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Reimagining capitalism - Principles of people centered economics

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsPeople-Centered Economic Development, a proposal forPeople-Centered Economic Development, a proposal foran alternative to traditional capitalism, was delivered toan alternative to traditional capitalism, was delivered toUS President William J Clinton inUS President William J Clinton in a white papera white paper on 16on 16September 1996.September 1996.The core argument from that paper is the P-CEDThe core argument from that paper is the P-CEDManifesto – which now follows.Manifesto – which now follows.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto1. The US economy transitioned from hard-asset based (gold, silver)in 1971 to Fed paper notes written solely against the “good faithand credit” of US citizens.2. Gold (or silver) is tangible, observable, finite: whatever is on hand,is on hand. That provides a firm, tangible, finite, objectiveeconomic anchor. There is no way to create more of it at will. One ton of gold is one ton of gold. Its quantity and value arerepresented in numbers. Since that time, the US national debtwent from near zero to nine trillion dollars in 2008 (~5 trillion in1996 when these points were first compiled.) That debt isbacked by nothing more than paper based on numbers whichmay or may not even exist.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto3. Adam Smith’s “invisible hand” does not mean “non-existent”, nor3. Adam Smith’s “invisible hand” does not mean “non-existent”, nordetached. It means what it says: invisible. That is, not observable.detached. It means what it says: invisible. That is, not observable.4. After disconnecting from the gold standard, US economics and4. After disconnecting from the gold standard, US economics andcapitalism became purely a matter of manipulating numbers. Therecapitalism became purely a matter of manipulating numbers. Therewas no longer a hard, observable, tangible, finite anchor. Numberswas no longer a hard, observable, tangible, finite anchor. Numbersare not hard, observable, or tangible, and may not even exist outsideare not hard, observable, or tangible, and may not even exist outsidethe mind of human beingsthe mind of human beings

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto5. With US and Western economics and capitalism shifted to5. With US and Western economics and capitalism shifted tomanipulation of numbers: are numbers real? That is, do numbersmanipulation of numbers: are numbers real? That is, do numbersexist independently of the human mind and imagination?exist independently of the human mind and imagination?6. Plato claimed numbers exist independently of the human mind, are6. Plato claimed numbers exist independently of the human mind, arereal, but exist in an ideal, transcendent, unmanifest world. Numbersreal, but exist in an ideal, transcendent, unmanifest world. Numbersexist because they are in that ideal world. That ideal world isexist because they are in that ideal world. That ideal world isrepresented to us by numbers, and by extension, mathematics.represented to us by numbers, and by extension, mathematics. Therefore, numbers exist beause numbers exist. Circular logic, per Therefore, numbers exist beause numbers exist. Circular logic, perhis protegé Aristotle.his protegé Aristotle.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto7. Descartes, mathematician/philosopher, finally got around some7. Descartes, mathematician/philosopher, finally got around somefifteen centuries later to further analyzing the questions of whatfifteen centuries later to further analyzing the questions of whatexists, what is real. He went past numbers to the question ofexists, what is real. He went past numbers to the question ofwhether he himself even existed. He posited that some entity, somewhether he himself even existed. He posited that some entity, somemanner of consciousness and material world in the form he foundmanner of consciousness and material world in the form he foundhimself, must necessarily and logically exist in order to ponder thehimself, must necessarily and logically exist in order to ponder thequestion to begin with. He concluded “cogito, ergo sum.” ”I think,question to begin with. He concluded “cogito, ergo sum.” ”I think,therefore I am.” Thus demonstrating that he, and by the sametherefore I am.” Thus demonstrating that he, and by the sameargument other humans, have firm evidence that we exist, and areargument other humans, have firm evidence that we exist, and arenot mere fantasies or cognitive constructs of an “Evil Genius”not mere fantasies or cognitive constructs of an “Evil Genius”imaginining all of us, the world, and the manifest universe. Humanimaginining all of us, the world, and the manifest universe. Humanbeings exist. He was not able to reach a similar conclusion aboutbeings exist. He was not able to reach a similar conclusion aboutnumbers, nor has anyone else, nor is it possible to reach any suchnumbers, nor has anyone else, nor is it possible to reach any suchconclusion because it is not possible to separate thinking of numbersconclusion because it is not possible to separate thinking of numbersby a human being from the human being himself or herself withoutby a human being from the human being himself or herself withouteradicating the human being. In which case, there would be nothingeradicating the human being. In which case, there would be nothingto speak or think further.to speak or think further.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto8. Capitalism based on numbers may or may not be valid, according8. Capitalism based on numbers may or may not be valid, accordingto whether or not numbers are valid, real, existent, independent ofto whether or not numbers are valid, real, existent, independent ofthe human mind. Positing them in Plato’s ideal realm and beggingthe human mind. Positing them in Plato’s ideal realm and beggingthe question of their existence on that basis was and is null and void.the question of their existence on that basis was and is null and void.9. Find a 1, or a 2. Not a symbolic representation of one or two, 1 or9. Find a 1, or a 2. Not a symbolic representation of one or two, 1 or2. Not a quantity of 1 of something, or 2 of something, but an actual2. Not a quantity of 1 of something, or 2 of something, but an actual1 or an actual 2, tangible, observable, on their own. Next, find a1 or an actual 2, tangible, observable, on their own. Next, find ahuman being. It is possible to find a human being, one human beinghuman being. It is possible to find a human being, one human beingor two human beings. It is so far not possible to find a 1 or a 2 in thisor two human beings. It is so far not possible to find a 1 or a 2 in thisworld. There are no instances in recorded history where either ofworld. There are no instances in recorded history where either ofthose have even been located and identified as entities independentthose have even been located and identified as entities independentof the human mind, nor any other number nor any mathematics norof the human mind, nor any other number nor any mathematics norany equation.any equation.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto10. Human beings are real.10. Human beings are real.11. If a) the independent existence of numbers is unknown, and11. If a) the independent existence of numbers is unknown, andunknowable; b) human beings do exist; then c) any system of humanunknowable; b) human beings do exist; then c) any system of humaneconomics based on reality can only be based on human beings.economics based on reality can only be based on human beings.12. Positing numbers as real entities, and basing economics on that12. Positing numbers as real entities, and basing economics on thatunproved and unprovable hypothesis, risks disposing of real entitiesunproved and unprovable hypothesis, risks disposing of real entities(human beings) in favor of imaginary entities (numbers.) The only(human beings) in favor of imaginary entities (numbers.) The onlyvariable needed for that to happen is unscrupulous human beings.variable needed for that to happen is unscrupulous human beings.13. Human-based – that is, people-centered – economics is the only13. Human-based – that is, people-centered – economics is the onlyvalid measure of economics.valid measure of economics.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto14. Manipulation of numbers, represented by currency/money, allows14. Manipulation of numbers, represented by currency/money, allowswriting “new” money as needed. There is no tangible asset, orwriting “new” money as needed. There is no tangible asset, oranchor. There are only numbers, managed by whomever mightanchor. There are only numbers, managed by whomever mightmaneuver into position to do so. Economics came to be based onmaneuver into position to do so. Economics came to be based onnumbers, rather than real human beings.numbers, rather than real human beings.15. On that basis, capitalism trumped people and therefore trumped15. On that basis, capitalism trumped people and therefore trumpeddemocracy. Democracy is about people, who since Descartes aredemocracy. Democracy is about people, who since Descartes areconsidered necessarily real, rather than numbers which are notconsidered necessarily real, rather than numbers which are notnecessarily real. An imaginary construct, numbers, rule a realnecessarily real. An imaginary construct, numbers, rule a realconstruct, people. That arrangement allows for disposal of realconstruct, people. That arrangement allows for disposal of realhuman beings, in the name of the imaginary construct.human beings, in the name of the imaginary construct.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto16. Capitalism nevertheless remains the most powerful economic16. Capitalism nevertheless remains the most powerful economicsystem ever devised. The problem is not with the construct. Thesystem ever devised. The problem is not with the construct. Theproblem is with the output of the construct, wherein imaginaryproblem is with the output of the construct, wherein imaginaryconstructs – numbers, and currencies represented symbolically byconstructs – numbers, and currencies represented symbolically bynumbers – are left to control real human beings to the materialnumbers – are left to control real human beings to the materialbenefit of relatively few people and to the exclusion of many others.benefit of relatively few people and to the exclusion of many others. Classical capitalism has reached equilibrium in this regard. Classical capitalism has reached equilibrium in this regard. However, and consequently, many and growing numbers of human However, and consequently, many and growing numbers of humanbeings are excluded in the realm of finite resources hoarded by thosebeings are excluded in the realm of finite resources hoarded by thosemost adept with manipulating numbers/currencies.most adept with manipulating numbers/currencies.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto17. This is where we find ourselves at the advent of the third age of17. This is where we find ourselves at the advent of the third age ofhuman civilization – the Information Age, following from thehuman civilization – the Information Age, following from theAgriculture Age and the Industrial Age. We are for the first time inAgriculture Age and the Industrial Age. We are for the first time inhuman history in position to take note of where we are and what wehuman history in position to take note of where we are and what weare doing to and with each other. Or, not.are doing to and with each other. Or, not.18. Modifying the output of capitalism is the only method available to18. Modifying the output of capitalism is the only method available toresolving the problem of capitalism where numbers trumped people –resolving the problem of capitalism where numbers trumped people –at the hands of people trained toward profit represented only byat the hands of people trained toward profit represented only bynumbers and currencies rather than human beings. Profit rules,numbers and currencies rather than human beings. Profit rules,people are expendable commodities represented by numbers. Thepeople are expendable commodities represented by numbers. Thesolution, and only solution, is to modify that output, measuring profitsolution, and only solution, is to modify that output, measuring profitin terms of real human beings instead of numbers.in terms of real human beings instead of numbers.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto19. We can choose to not reform capitalism, leave human beings to19. We can choose to not reform capitalism, leave human beings todie from deprivation – where we are now – and understand that thatdie from deprivation – where we are now – and understand that thatputs people in self-defense mode.puts people in self-defense mode.20. When in self-defense mode, kill or be killed, there is no20. When in self-defense mode, kill or be killed, there is nocivilization at all. It is the law of the jungle, where we started eonscivilization at all. It is the law of the jungle, where we started eonsago. In that context, ‘terrorism’ will likely flourish because it isago. In that context, ‘terrorism’ will likely flourish because it is‘terrorism’ only for the haves, not for the have-nots. The have-nots‘terrorism’ only for the haves, not for the have-nots. The have-notsalready live in terror, as their existence is threatened by deprivation,already live in terror, as their existence is threatened by deprivation,and they have the right to fight back any way they can.and they have the right to fight back any way they can.21. “They” will fight back, and do.21. “They” will fight back, and do.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto22. The Information Age can become the pinnacle of human22. The Information Age can become the pinnacle of humancivilization, the Golden Age. Or, it can become the end of humancivilization, the Golden Age. Or, it can become the end of humancivilization. We get to decide which way to go, and act accordingly.civilization. We get to decide which way to go, and act accordingly.23. Dismissing people and consciously leaving them to die is23. Dismissing people and consciously leaving them to die isprobably not the way to go.probably not the way to go.

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Principles of People-Centered EconomicsPrinciples of People-Centered EconomicsThe P-CED ManifestoThe P-CED Manifesto24. Economics, and indeed human civilization, can only be measured24. Economics, and indeed human civilization, can only be measuredand calibrated in terms of human beings. Everything in economicsand calibrated in terms of human beings. Everything in economicshas to be adjusted for people, first, and abandoning the illusoryhas to be adjusted for people, first, and abandoning the illusorynumerical analyses that inevitably put numbers ahead of people,numerical analyses that inevitably put numbers ahead of people,capitalism ahead of democracy, and degradation ahead ofcapitalism ahead of democracy, and degradation ahead ofcompassion.compassion.25. Each of us who have a choice can choose what we want to do to25. Each of us who have a choice can choose what we want to do tohelp or not. It is free-will, our choice, as human beings.help or not. It is free-will, our choice, as human beings.LinksLinksP-CED websiteP-CED websiteEconomics for Humanity blogEconomics for Humanity blog